Earned Value Management Tutorial（英文版）(ppt 321页).ppt

1、Earned Value Management Tutorial Module 1: Introduction to Earned Value Management,Prepared by:,Module 1 - Introduction,Module1: Introduction to Earned Value,Welcome to Module 1. The objective of this module is to introduce you to Earned Value and lay the blueprint for the succeeding modules. This m

2、odule will include the following topics: Earned Value Management defined The differences between Traditional Management and Earned Value Management www.ZQZL.cn中国最大的资料库下载 How Earned Value Management fits into a Program and Project environment The framework necessary for proper Earned Value implementa

3、tion,Module 1 - Introduction,What is Earned Value Management?,Earned Value Management (EVM) is a systematic approach to the integration and measurement of cost, schedule, and technical (scope) accomplishments on a project or task. It provides both the government and contractors the ability to examin

4、e detailed schedule information, critical program and technical milestones, and cost data. Earned Value Management is intended to provide data from a contractors management system to the government in standard data elements that Relate time-phased budgets to contract tasks Integrate cost, schedule,

5、and technical performance Indicate work progress objectively Are valid, timely and auditable Are from the internal system the contractor uses to manage Are at a practical level of summarization,Module 1 - Introduction,Why use Earned Value Management?,By using Earned Value and implementing an Earned

6、Value Management System (EVMS), the following questions can be answered objectively: Where have we been? Where are we now? Where are we going? Why use Earned Value? For one, it is mandated by some key DOE directives and guidance that Earned Value will be implemented. The following pages will discuss

7、 these.,Module 1 - Introduction,DOE guidance for Earned Value,A memorandum from the Deputy Secretary of Energy, dated September 19, 2001. “I intend to continue the direction contained in DOE Order 413.3. The responsibilities contained in the Order require that you know what is going on with your pro

8、jects and that you assist your program managers and project managers in resolving issues and problems. The quarterly performance reviews, monthly status updates utilizing the Earned Value Management System as a metric, and periodic independent reviews are all sources for project information that all

9、ow us the opportunity to intercede before projects get off track.” Now lets look at the DOE Order 413.3,Module 1 - Introduction,DOE guidance for Earned Value,Current Department of Energy policy, DOE Order 413.3, Program and Project Management for the Acquisition of Capital Assets, states the require

10、ments for contractors project management system “ The industry standard for project control systems described in American National Standards Institute (ANSI) EIA-748, Earned Value Management Systems, must be implemented on all projects with a total project cost (TPC) greater than $20M for control of

11、 project performance during the project execution phase.” Finally, below lets look at some Best Practice guidance currently in the DOE. The Office of Field Management has issued a series of 33 Good Practice Guides. Though they are not official guidance, each guide describes the good practices used t

12、hroughout DOE and industry for specific topic including Earned Value Management, and provides examples of performance objectives, criteria, and measures.,Module 1 - Introduction,Earned Value Management History,With the understanding of what Earned Value is and why it used, lets take a brief look at

13、the history of Earned Value. 1960s - Earned value-based performance management began in the 60s, based initially on Department of Defense (DOD) Cost/Schedule Control Systems Criteria (C/SCSC). Earned Value was used as an objective measure for progress, i.e., physical accomplishment 1970s-80s The DOD

14、 continued the use of Earned Value in response to bearing cost and schedule risk in cost-plus contracting. Contractors pushing high tech, newly developed weaponry Military having critical schedule needs (“Arms Race”) 1990s Policy moved Earned Value into all Federal agencies OMB Circular: A-11, NASA

15、Policy Directive 9501.3, DOD 5000.2R, and DOE Order 413.3 to name a few,Module 1 - Introduction,Traditional Management vs. Earned Value Management,To better understand Earned Value Management, lets take a look at how earned value management compares with traditional management. There is an important

16、 and fundamental difference between the data available for analysis in a traditional management environment as compared to an environment using earned value. Following pages will discuss and contrast the different between the two management approaches.,Module 1 - Introduction,Traditional Management,

17、In Traditional management, there are two data sources, the budget (or planned) expenditures and the actual expenditures. The comparison of budget versus actual expenditures merely indicates what was planned to be spent versus what was actually spent at any given time. But how much has been produced?

18、 As you can see, with this approach there in no way to determine the physical amount of work performed. It does not indicate anything about what has actually been produced for the amount of money spent nor whether it is being produced at the rate, or according to the schedule, originally planned. In

19、 other words, it does not relate the true cost performance of the project.,As the graph shows, this comparison only represents the relationship of what was budgeted (planned) versus what was actually spent.,Module 1 - Introduction,Earned Value Management,In Earned Value Management, unlike in traditi

20、onal management, there are three data sources: the budget (or planned) value of work scheduled the actual value of work completed the “earned value” of the physical work completed Earned Value takes these three data sources and is able to compare the budgeted value of work scheduled and compare it t

21、o the “earned value of physical work completed” and the actual value of work completed. www.ZQZL.cn中国最大的资料库下载 Lets take a closer look at how earned value appears in a graph.,Module 1 - Introduction,Earned Value Management,Notice the three lines on the graph below. These lines correspond to the three

22、 components of earned value: budget (in red), actual expenditures (in blue), and the earned value of the production (in black). Note how the budget line is below both the actual expenditures and the earned value lines. What does this indicate? First, it is obvious that the project is expending more

23、(blue line) than it was budgeted to spend, to date,(red line). Given the progression of each line, it is also apparent that this trend has occurred since the beginning of the project. But what else can be interpreted from the graph? Lets take a closer look on the next page.,Module 1 - Introduction,E

24、arned Value Management,In addition to tracking budget and actual expenditures, the graph indicates what has been completed or “earned”. By comparing the budget line (in red) to the earned value line (in black), it is immediately apparent that the project is producing more than it was budgeted to pro

25、duce to date. Additionally, by comparing the actual expenditures (in blue) to the earned value line (in black), it is immediately apparent that the project is spending more then it was budget to date. So while the project is expending more (blue line) than budgeted (red line), it is also producing m

26、ore (black line) than budgeted. So what conclusions can be drawn from this graph? Lets find out on the next page.,Module 1 - Introduction,Earned Value Management,There are two conclusions the earned value data will immediately let you make; they deal with schedule and cost variances. Schedule Varian

27、ce - the project is experiencing a schedule variance of 15. This is derived from comparing the Earned (45) to the Budget (30). Another way of stating this is that the project is ahead of schedule in comparison to what was supposed to be done in the frame time measured.,Module 1 - Introduction,Earned

28、 Value Management,Cost Variance - the project is experiencing a cost variance of -15. This is derived from comparing the Earned (45) to the Actual expenditures (60). Another way of stating is that the project is experiencing an overrun of 15. This cost variance is very important because history tell

29、s us that overruns in cost do not correct themselves and need management intervention. Along with the schedule and cost results discussed, earned value management enables you to forecast the final results of the project (blue dashed line).,Module 1 - Introduction,Summarizing Traditional Management v

30、s. Earned Value Management,In summarizing, Traditional management provides you with How much money and time a particular job is likely to require prior to starting and once stated, how much money was spent at any given time. While Earned Value Management provides you with How much money and time a p

31、articular job is likely to require prior to starting and once stated, how much money was spent at any given time. Plus Once started, what work has been accomplished to date for the funds expended (what you got for what you spent) Once started, what the total job will cost at completion, and how long

32、 it will take to complete,Module 1 - Introduction,Earned Value in a Management Environment,Understanding how Earned Value fits into the program and project management environment is also essential. On the following page we will discuss and define items such as project vs. program, project management

33、, program management and the relationship between them.,Module 1 - Introduction,What is Program/Project Management?,Program/Project Management is the application of knowledge, skills, tools, and techniques to meet or exceed stakeholder needs and expectations. Program/Project Management requires the

34、ability to get the job done: On Time! Within Budget! According to Specifications! With a High Level of Customer Satisfaction These requirements are know as the “Triple Constraint”,So how do projects and programs differ? Take a look on the next page.,Module 1 - Introduction,What is a Project vs. Prog

35、ram,The Characteristics of a Project are: Temporary endeavor undertaken to create a unique product or service Having a definite beginning and a definite end The Characteristics of a Program are: A group of projects Managed in a corresponding way To obtain benefits not available from managing them in

36、dividually,Module 1 - Introduction,Earned Value Management vs Program/Project Management,Earned Value is a Program/Project management technique used to objectively evaluate cost and schedule efficiency, thereby facilitating better management of customer needs and expectations.,Program Management Pro

37、ject Management Budgeting Cost Proposals/Negotiations Cost Collection Change Control Earned Value Management Forecasting Funding Resource Management Reporting Risk Management Scheduling,Earned Value Management is a subset of Program/Project Management. As this hierarchy indicates, Earned Value Manag

38、ement is a component of Project Management, which in turn is a component of Program Management. While many components comprise Program and Project Management, this tutorial focuses on the Earned Value Management component.,Module 1 - Introduction,Framework for an Earned Value Management System (EVMS

39、),So far, we have discussed what Earned Value is, why to use it, and how it fits into a program and project management environment. Next, we need to discuss the framework needed to implement earned value. The EVMS framework can be divided into three phases: Inputs - what is needed to implement Earne

40、d Value Earned Value Methods formulas, metrics and performance measurements used Outputs reporting requirements (structure, time-phases, details) On the following pages these three phases for developing an Earned Value Management System (EVMS) will be discussed in more detail.,Module 1 - Introductio

41、n,Inputs needed for Earned Value Management System (EVMS),As you recall, the first phase of Earned Value is inputs. The inputs required for an EVMS include: Work Breakdown Structure (WBS) Organizational Breakdown Structure (OBS) Project Schedule Time-phased Baseline Budget Cost/Resource Control Plan

42、 Change Control Plan If any of these items are not completed or are not completed appropriately, the use of Earned Value will be compromised and your outputs will not properly represent the program/project current and future status.,These Items are covered in Modules 2 through 4 and Module 8,Module

43、1 - Introduction,Earned Value Method needed for Earned Value Management System (EVMS),The second phase of Earned Value is the earned value method. The Earned Value method required for an EVMS include: Planned Value (PV), Earned Value (EV) Actual Cost (AC) Metrics and Performance Measurements Forecas

44、ting Integrated Baseline Review Once again, if any of these items are not completed or are not completed appropriately, the use of Earned Value will be compromised and your outputs will not properly represent the program/project current and future status.,These Items are covered in Modules 5 through

45、 7,Module 1 - Introduction,Outputs needed for Earned Value Management System (EVMS),The last phase of Earned Value is the outputs. The outputs required for an EVMS include: Reporting requirements Proper Analysis of Reports Correct Action taken Even if the first two phases are completed appropriately

46、, improper analysis of the outputs could cause inappropriate or inadequate actions to be taken against the program/project and could either create problems that otherwise would not exist or fail to fix the real problem that does exist.,These Items are covered in Modules 9,10 make sure you take these

47、 into consideration when developing low level details Review and refine the WBS until the stakeholders agree with the level of project planning and reporting. Remember that no matter how detailed a WBS is, there are planning and reporting restrictions a WBS creates. On the following pages, we will l

48、ook at examples of these restrictions.,Module 2 Work Breakdown Structure,Preparing a WBS,Lets use the BEST Management Books WBS we looked at earlier. Assume that the WBS was only planned down to the chapters level (see graph below, left), but after the first month of work, the stakeholder wants repo

49、rting at the subchapter level (see graph below, right). Without restructuring the WBS and changing the other supporting systems, like cost tracking and reporting, it is impossible for the project manager to meet the stakeholders request.,Current Project WBS,Project WBS Needed,Not Planned to this lev

50、el,Module 2 Work Breakdown Structure,Preparing a WBS,Now lets reverse the situation. Assume WBS was planned down to the subchapter level (see graph below, left), but after the first month of work, the stakeholder wants reporting at the chapter level (see graph below, right). Is there any restructuri

51、ng needed to the WBS? The answer is “No”. Since you planned the work at a level below what is now the stakeholders requirement, you can “roll-up” and meet the stakeholders request. Do you still see a problem with the project WBS? Lets take a look. .,Current Project WBS,Project WBS Needed,Module 2 Wo

52、rk Breakdown Structure,Preparing a WBS,Actually, there is not a problem with the WBS structure, but a problem with the idea of time and cost. The project manager spent time and resources to define the WBS down to a level that he determined was appropriate. The only benefit could be that the project

53、manager wishes to manage the project at the lower level and will roll-up reporting for the stakeholder. In review, always get stakeholders to agree with the level of project planning and reporting.,Current Project WBS,Project WBS Needed,Module 2 Work Breakdown Structure,Preparing a WBS,In developing

54、 a WBS, one must realize that there are multiple ways to develop a WBS for any given project. Some ways might be better than others, but the two most important item to remember are that the WBS must contain all approved scope and the Project Manager must develop the WBS to reflect the way he/she int

55、ends to manage the project. Other items to consider when developing a WBS are: Reporting requirements Size of project Resource executing the work (contractors vs. in-house) Complexity of the project On the following two pages are examples of alternative WBS structures for the BEST Management Books p

56、roject.,Module 2 Work Breakdown Structure,Preparing a WBS,This WBS structure is designed to control scope by chapters, unlike the original WBS which was developed to control scope by writing and editing.,Module 2 Work Breakdown Structure,Preparing a WBS,This WBS structure is taking into consideratio

57、n that the writing and editing will be executed by a contractor. It still requires the contractor to control scope by writing and editing by chapter.,Module 2 Work Breakdown Structure,Building a WBS,Armed with the basics of the WBS, it is time to examine them in more detail and to begin to understan

58、d how to build one. To do this, lets look at building a WBS for the construction of a single family home. First, take a moment to familiarize yourself with some background information about the construction company, which appears on the next page.,Module 2 Work Breakdown Structure,WBS: Structure,The

59、 ACME Housing Corporation, which you own, has been contracted to build its first house. You want to be able to manage your projects effectively and efficiently, so you charge your project managers to develop an appropriate WBS. You decide to manage the project by the individual tasks necessary to complete the house. You hope that this is the first of many houses that ACME will build, so you start the WBS with ACME in the highest position, or Level 1. Accordingly, Level 1 is given a WBS code of 1. You assign the WBS code of 1 to the highest level because all future projects